"ZD Net" said : Huawei profit stagnant despite revenue jump to 522b yuan

as mentioned in Cash flow from operating activities was down by 5.9 percent, to 49.2 billion yuan, with short-term and long-term borrowings more than doubling from 29 billion yuan to 44.8 billion yuan in an effort to meet its "liquidity needs". Selling and administrative expenses were up by 38.8 percent, to 86.4 billion yuan, while its foreign exchange loss was up by almost 20 percent, to 5.2 billion yuan. In terms of its expenses during the year, Huawei spent 76.4 billion yuan on R&D, or 14.6 percent of its total revenue. Huawei in July reported half-year sales revenue of 245.5 billion yuan, up 40 percent year on year. In terms of revenue, Huawei's consumer business rose by 43.6 percent over the year, to 179.8 billion yuan, as the enterprise business grew by 47.3 percent to 40.7 billion yuan and the carrier business by 23.6 percent to 290.6 billion yuan.


referring to

China's Huawei posts flat profit growth amid tough battle with rivals

"Only revenue growth and no profit growth will not be tolerated," said Huawei rotating Chief Executive Eric Xu. REUTERS/Eric Gaillard/File PhotoFILE PHOTO: Journalists follow the presentation of a Huawei smartphone ahead of the IFA Electronics show in Berlin, Germany, September 2, 2015. Huawei's net profit margin overall dropped to 7.1 percent from 9.3 percent a year ago. Huawei shipped 139 million phones last year, up 29 percent compared with a flat global smartphone market. Revenue from its consumer business grew 44 percent to 179.8 billion yuan ($26 billion).


SHENZHEN, China — It's a mixed bag when it comes to Chinese tech giant Huawei, where profits are largely flat and sales continue to rise. Profit growth was much weaker than expected, though sales came in line with the company's own guidance released earlier this year. Net profit edged up 0.4 percent to 37.1 billion yuan ($5.3 billion) in 2016, while overall revenue jumped 32 percent to 521.6 billion yuan ($75.1 billion), according to the company. Both profit and sales are no longer rising as quickly as before, and analysts say increased spending on R&D and marketing are beginning to thin out margins. The Shenzhen-based company remains extremely ambitious, and has continued to spend massively on R&D, shelling out 76.4 billion yuan ($11 billion) to further its business.


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collected by :Andro Alex